192.01 Statement of purpose.
192.02 Use of defined terms.
192.03 Definitions of specific terms created by this chapter.
192.04 Definitions; types of authorized investments.
192.05 Definitions; institutions operating under this chapter.
192.06 Definitions; agreements described in this chapter.
192.07 Investment and banking policy objectives.
192.08 Investment Advisory Committee.
192.09 Investment authorization.
192.10 Investment strategy.
192.11 Investment selection.
192.12 Authorized investments.
192.13 Diversification.
192.14 Maturity of authorized investments.
192.15 Safekeeping provisions.
192.16 Reporting duties of the City Treasurer.
192.17 Central Depository.
192.18 Collateralization requirements.
192.19 Substitution of collateral.
192.20 Notice procedures.
192.21 Custodian agreements.
192.22 Pooling of funds.
192.24 Audit and review.
192.25 Liability of City officials.
CROSS REFERENCES
Uniform Depository Act - see Ohio R.C. Ch. 135
Deposit of funds - see ADM. Ch. 191
The City, pursuant to Section 3 of Article XVIII, of the Ohio Constitution, is empowered to exercise all of the powers of local self-government. Sections 7 and 8 of that Article empower a municipal corporation to become a charter city. The General Assembly has recognized the existence of the power of local self-government with respect to investment of moneys of a municipal corporation by the enactment of legislation, specifically Ohio R.C. 135.01(L), which recognizes the right of a charter city to enact legislation which meets its own specific needs regarding the deposit, investment and management of public funds. Under the provisions of Chapter 192 of the Toledo Municipal Code, the only provisions of Ohio R.C. Chapter 135 which are applicable to the City, are Ohio R.C. 135.18(C) and Ohio R.C. 135.181(I). Implementation of the power of local self-government granted to a municipal corporation is to be found in Sections 10 and 129 of the Toledo City Charter, which empowers the City to exercise all such powers whether or not specifically enumerated in the City's Charter. The provisions of Chapter 192 are consistent with the authority granted by the Ohio Constitution and fulfill the City's requirement for a comprehensive banking and investment policy. Investments controlled by agreement heretofore or hereafter entered into with the Federal Government, investments made pursuant to agreement heretofore or hereafter entered into in connection with the sale of notes or bonds issued by the City and agreements for banking and investment services in effect on the date when this chapter is enacted shall be made or observed in accordance with the provisions of such agreements. Investments held in the City's Treasury investment account on the date this chapter becomes effective are not controlled by the provisions of Chapter 192. Such investments shall be maintained by the City until they mature, or are otherwise retired or are disposed of pursuant to the provisions of the sections of the Toledo Municipal Code under which they were purchased.
(Ord. 366-86. Passed 5-20-86.)
In addition to the words and terms defined elsewhere in this chapter or by reference to another document, the words and terms set forth herein shall have the meanings set forth herein unless the context or use clearly indicates another meaning or intent. Such definitions shall be equally applicable to singular and plural and to masculine as well as feminine forms of any of the words and terms defined.
(Ord. 366-86. Passed 5-20-86.)
(a) "Appeal Process" means a process by which a financial institution meeting all of the requirements of a Depository except the Equity Capital minimum may apply to the Investment Advisory Committee for consideration of its qualifications to obtain the Committee's recommendation to City Council that the financial institution be granted Depository status on an exception basis. If the Investment Advisory Committee considers such an exception to be appropriate, it shall make a recommendation to City Council requesting approval of such action. An ordinance approved by City Council shall be necessary to designate such financial institution as a Depository under this process. In order to merit recommendation to City Council by the Investment Advisory Committee, the financial institution must demonstrate that it is, at a minimum, in compliance with the current capital adequacy requirements established by the appropriate regulatory agency having authority over the financial institution. Approval as a Depository under this process shall be for a maximum of two years, after which the financial institution must reapply to the Investment Advisory Committee for continued approval. This process shall be carried out in such manner as the Investment Advisory Committee shall determine.
(b) "Authorized Investments" means
(1) Certificates of deposits.
A. Negotiable interest-bearing time certificates of deposit.
B. Non-negotiable interest-bearing time certificates of deposit.
C. Federally insured certificates of deposit initiated through a reciprocal network of banks or savings and loan associations that are members of the Federal Deposit Insurance Corporation.
(2) City's Securities.
(3) Demand deposits which bear interest.
(4) Government Agencies and Instrumentalities.
(5) Government Securities.
(6) Repurchase Securities.
(7) Municipal Securities.
(8) Non-demand savings accounts.
(9) State Treasurer's Investment Pool (STAR Ohio) created pursuant to Ohio R.C. 135.45.
(10) STAR Plus Federally Insured Cash Account.
(Ord. 182-13. Passed 4-30-13.)
(c) "City" means the City of Toledo.
(d) "Eligible Collateral" means securities, as to which no lien or other encumbrance exists at the time of pledging, pledged by a Depository to secure or guarantee the repayment by the Depository of funds deposited or invested by the City with that Depository. The following securities are eligible to be pledged as collateral:
(1) Bonds, notes or other direct obligations of the United States, or bonds, notes or obligations guaranteed as to the timely payment of principal and interest by the United States or those for which the faith of the United States is pledged for the payment of principal and interest thereon by language appearing in the instruments specifically providing such guarantee or pledge and not merely by interpretation or otherwise.
(2) Bonds, notes, debentures or other obligations issued by any federal government agency or the Export-Import Bank of Washington.
(3) Bonds or other obligations of the State.
(4) City's or Municipal Securities.
Eligible Collateral may be pledged either as "Specific Collateral" or "Pooled Collateral", as defined herein.
(e) "Equity Capital" means ownership interest in a Depository which is represented by (1) the par value of common and preferred stock, if any, (2) additional paid-in capital and (3) retained earnings or retained income.
(f) "Investment Portfolio" means those authorized investments made by the City for the purpose of earning a monetary return, including interest, on the amount invested.
(g) "Municipal Securities" means those securities of political entities other than the City which are rated at the time of acquisition by Moody's or Standard and Poor's in at least the third highest category when rated with a long term rating or in the highest category when rated with a short term rating.
(h) "Pooled Collateral" means Eligible Collateral which is placed by a Depository in a single pool and which is pledged as security for deposits or investments of funds of the City and one or more other political entities held by that Depository.
(i) "Specific Collateral" means Eligible Collateral which is specifically pledged by a Depository to secure deposits or investments of funds of the City.
(j) "State" means the state of Ohio.
(Ord. 95-97. Passed 2-18-97.)
(a) "Certificates of deposit" means Negotiable interest-bearing time certificates of deposit and Non-negotiable interest-bearing time certificates of deposit and Federally insured certificates of deposit initiated through a reciprocal network of banks or savings and loan associations that are members of the Federal Deposit Insurance Corporation.
(1) "Negotiable interest-bearing time certificates of deposit" means certificates of deposit in negotiable form representing deposits of the City placed in an institution having all of the qualifications of a Depository except that it need only have an office located in the State rather than in the City. Such certificates of deposit are subject to the collateralization requirements of Section 192.18 to the extent not insured by the Federal Deposit Insurance Corporation.
(2) "Non-negotiable interest-bearing time certificates of deposit" means certificates of deposit in non-negotiable form representing deposits of the City placed in an institution having all of the qualifications of a Depository except that it need only have an office located in the State rather than in the City. Such certificates of deposit are subject to the collateralization requirements of Section 192.18 to the extent not insured by the Federal Deposit Insurance Corporation.
(3) "Federally insured certificates of deposit initiated through a reciprocal network of banks or savings and loan associations that are members of the Federal Deposit Insurance Corporation" means certificates of deposit placed in a Federal Deposit Insurance Corporation member bank or savings and loan association having an office in Lucas County and under an arrangement whereby the full amount of the deposit is allocated among a reciprocal network of participating Federal Deposit Insurance Corporation member banks or savings and loan associations, wherever located, such that the full amount of the City's deposit is covered by federal deposit insurance. Such certificates of deposit are not subject to the collateralization requirements of Section 192.18.
(Ord. 69-12. Passed 2-28-12.)
(b) "City's Securities" means bonds, notes or other negotiable instruments evidencing the obligation of the City to pay money.
(c) "Demand deposits" means those funds of the City which are deposited either with an institution having all of the qualifications of a Depository except that it need only have an office located in the State rather than in the City or through the STAR Plus Federally Insured Cash Account and payable on demand of the City. Such deposits may include interest-bearing or non-interest-bearing checking accounts, NOW accounts, super NOW accounts, savings accounts or other similar accounts authorized by the Federal Reserve Bank Board or the Federal Home Loan Bank Board. Demand deposits are subject to the collateralization requirements of Section 192.18 to the extent not insured by the Federal Deposit Insurance Corporation.
(Ord. 182-13. Passed 4-30-13.)
(d) "Government Agencies and Instrumentalities" means obligations issued by the following whether or not such obliga tions are guaranteed by the United States:
Federal Farm Credit Banks
Federal Home Loan Banks
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
(Ord. 361-07. Passed 6-26-07.)
(e) "Government Securities" means direct obligations of the United States which include, but are not limited to, Treasury certificates, bills, bonds, notes, as well as United States Treasury obligations, State and Local Government Series.
(f) "Non-demand savings accounts" means those savings accounts of the City in an institution having all of the qualifications of a Depository except that it need only have an office located in the State rather than in the City that are not payable on demand but, instead, are payable at a certain date. Non-demand savings accounts are subject to the collateralization requirements of Section 192.18 to the extent not insured by the Federal Deposit Insurance Corporation.
(g) "Repurchase Securities" means those securities which are the subject of a Repurchase Agreement and are: (i) bonds, notes or other obligations of or are guaranteed by the United States or (ii) those for which the faith of the United States is pledged for the payment of principal thereon or (iii) bonds, notes, debentures or other obligations or securities issued by any federal government agency or the Export-Import Bank of Washington. Repurchase Securities shall mature or be redeemable at the option of the holder within five years from the date of their sale to the City and shall have at the time of purchase by the City a market value at least equal to one hundred percent (100%) of the price at which the Repurchase Securities are to be repurchased from the City, or such greater percentage as is agreed upon by the seller and the City prior to or upon entering into a particular transaction.
(Ord. 671-02. Passed 12-3-02.)
(h) "STAR Plus Federally Insured Cash Account" means an investment program authorized by Ohio R.C. 135.145 and offered in conjunction with the State Treasurer's Investment Pool (STAR Ohio) under which funds invested through the program are deposited in various federally insured banks, savings banks or savings and loan associations located anywhere in the United States in such a manner that the full amount of the public moneys deposited is insured by the Federal Deposit Insurance Corporation. Deposits made under this program are not subject to the collateralization requirements of Section 192.18.
(Ord. 182-13. Passed 4-30-13.)
(a) "Central Depository" means a single bank or trust company to be so designated and utilized for the purpose of enhancing the City's cash management activities through the centralization of banking services and which has the qualifications of a Depository.
(b) "Custodian" means the State or City Treasurer, a Federal Reserve Bank or a Depository which is qualified to exercise trust powers under the laws of the State.
(c) "Depository" means a bank, trust company or savings and loan association organized under the laws of the State or under the laws of the United States, doing business and situated in the State which:
(1) Has an office located in the City which is capable of providing those banking services which the City requests.
(2) Has deposits which are insured by the Federal Deposit Insurance Corporation.
(3) Has Equity Capital in excess of fifty million dollars ($50,000,000) or has been approved by an ordinance of City Council following completion of the Appeal Process.
(4) Carries a holding company Long Term Issuer Default Rating by Fitch of "BBB" or better. A rating of "BBB-" is not acceptable.
(5) Provides collateralization as required by Section 192.18 of the Toledo Municipal Code.
(Ord. 182-13. Passed 4-30-13.)
(d) "Fitch" means Fitch Information, Inc., a rating service located in New York, New York, and any successor thereto by reason of reorganization, merger and/or acquisition, whose purpose is the evaluation and the publication of those evaluations of the financial condition of banks and savings and loan associations.
(e) "Highline Financial, LLC" means Highline Financial, LLC, a rating service located in Austin, Texas, and any successor thereto by reason of reorganization, merger and/or acquisition, whose purpose is the evaluation of the financial condition of banks and savings and loan associations and the publication of those evaluations.
(f) "Moody's" means Moody's Investors Service, Inc., a rating service located in New York, New York, or any successor thereto by reason of reorganization, merger and/or acquisition, whose purpose is to evaluate securities' credit worthiness and to publish those evaluations.
(g) "Primary Securities Dealers" means those entities which are identified as primary securities dealers by the Federal Reserve Bank, District II.
(h) "Securities Dealers" means any of the following:
(1) Institutions having all of the qualifications of a Depository except that they need have only an office located in the State rather than in the City.
(2) Primary Securities Dealers.
(3) Firms which are members of both the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).
(i) "Standard and Poor's" means Standard and Poor's Corporation, a rating service located in New York, New York, or any successor thereto by reason of reorganization, merger and/or acquisition, whose purpose is to evaluate securities' credit worthiness and to publish those evaluations.
(Ord. 468-09. Passed 9-1-09.)
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